Ares and Kayne Terminate $2.55B Merger

October 28, 2015

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Ares Management and Kayne Anderson Capital Advisors have announced that they have agreed to terminate their previously signed merger agreement. With conflicting views regarding how to best proceed with the business combination given the current energy sector market conditions, the two firms thought it may be best to simply end the deal. Despite the breakup, Ares will still invest $150 million into Kayne's energy activities, which includes private equity, along with private energy income & energy infrastructure marketable securities funds. As outlined in the initial agreement, Ares would have provided $2.55 billion in consideration, the majority of which would have come in the form of Ares Operating Group Units.